Fin Plan Test 2

Front 1

pure insurance that covers the insured for a set period of time

Back 1

term insurance

Front 2

term insurance that provides the same death benefit throughout the policy's entire term

Back 2

level term insurance

Front 3

term insurance that provides a decreasing death benefit during the term of the policy

Back 3

decreasing term insurance

Front 4

a policy that combines life insurance protection with a savings feature

Back 4

whole life insurance

Front 5

ordinary whole life insurance

Back 5

straight life insurance

Front 6

the currect value of the saving features of a whole life policy; the policy can usually be surrendered for its cash value

Back 6

cash value

Front 7

a life insurance policy that combines life insurance protection with a tax deferred savings account that earns competitive interest

Back 7

universal life insurance

Front 8

the recipients of the proceeds of the policy if the insured dies

Back 8

beneficiary

Front 9

a clasue that doubles or triples the amount of life insurance proceeds in the event the insured died in an accident

Back 9

double- or triple- indemnity clause

Front 10

a clause that commits the insurance company to make premium payments for you if an illness or accident prevents you from working

Back 10

waiver or premium clause

Front 11

a clause giving you the right to purchase additional insurance without having to pass a physical exam

Back 11

guaranteed insurability clause

Front 12

a feature that protects your cash value should you allow the policy to lapse

Back 12

nonforfeiture option

Front 13

a method of valuing an insurance policy according to the amount of premiums paid, minus the accumulated cash value

Back 13

net cost method

Front 14

a method of computing the cost of an insuracnce policy, taking into account the total premiums paid, the accumluated cash value, and the calue of accrued dividends

Back 14

interest-adjusted cost index method